Intuit (INTU), a creater of business and financial management solutions, saw its loss widen to $39 million or $0.14 a share for the quarter ended Jul. 31, 2014. In the previous year period, the company disclosed a loss of $16 million or $0.05 a share.
Revenue during the quarter grew 12.62 percent to $714 million from $634 million in the last year period.
Gross margin contracted by 455 basis points over the previous year period to 76.05 percent. Operating margin for the current period stood at negative 10.22 percent as compared to negative 9.46 percent for the previous year period.
The company disclosed operating loss of $73 million, compared with operating loss of $60 million in the last year period.
''We closed fiscal 2014 on a strong note. Overall customer growth is accelerating, active use and attach rates are increasing, and global adoption is in full swing,'' said Brad Smith, Intuit's president and chief executive officer. ''We've reached an inflection point, as more new customers chose QuickBooks Online over QuickBooks Desktop, fueled by the success of our reimagined QuickBooks Online product experience.
''The cloud is a better experience for our customers, and it is also better for our shareholders,'' said Neil Williams, Intuit's chief financial officer. ''Delivering better products and increasing our focus on our online ecosystem will generate more customers and faster growth longer term. Bottom line, we see longer-term financial gains with online subscriptions and will measure our progress by focusing on subscriber growth and annual recurring revenue.''
Cash Flow
Intuit has generated cash of $1,454 million from operating activities during the year, up 6.44 percent or $88 million when compared with the last year period. The company has generated 32.27 cents of operating cash flow in every sales dollar for the year, down from 32.75 cents in the same period last year.
The company has spent $57 million cash to meet investing activities during the year, as against cash outgo of $485 million in the last year period. It has made net capital expenditure of $209 million during the year, which was higher by null percent or null million, from a year ago.
The company's free cash flow accounted for 85.63 percent of operating cash flow for the year, compared with 84.70 percent in the last year period.
The company has spent $1,551 million cash to meet financing activities during the year, as against cash outgo of $262 million in the last year period. It has spent net of $1,412 million on repurchase of common stocks.
The company's cash dividend payment increased 8.37 percent or $17 million to $220 million.
As on Jul. 31, 2014, the company's cash balance stood at $849 million, down 15.86 percent or $160 million from Jul. 31, 2013.
Working Capital
Intuit has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1,190 million as at Jul. 31, 2014, up $74 million or 6.63 percent from $1,116 million on Jul. 31, 2013. It registered a decrease in current ratio to 1.83 as at Jul. 31, 2014 from 1.87 on Jul. 31, 2013.
Debt Position
Intuit has witnessed in long-term debt over the last one year. As on Jul. 31, 2014, long-term debt stood at $499 million. The company total debt was 9.58 percent of total assets as on Jul. 31, 2014, compared with 9.10 percent on Jul. 31, 2013.
Shares of the company gained $0.54 or 0.63 percent to settle at $85.81 on Thursday.